Full Year Results 2022/23
1 April 2022 to 31 March 2023

AgendaOpening Remarks

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank Rehfeld

Proposal to Shareholders

Andreas Hürlimann

Full Year Results 2022/23

25.05.2023

2Excellent performance despite challenging year
Our global teams showed great resolve, flexibility and determination
Getting through last year
Lockdowns in China in April, May, and November, followed by sudden lifting ofrestrictions in December
Intensified component shortages challenged our supply chainsIf we’d had access to the supplies we needed, we could have sold even more

Revenues are evidence of product demand and operational strengths
Electrification and decarbonization, which drive our business, are accelerating
Strong underlying growth in all our markets offers many opportunities tocapture growth
LEM is ideally positioned to support customers in the electrification era

Full Year Results 2022/23

25.05.2023

3

Record financial results for full year 2022/23
Profitability remains robust
We are delighted to report record annual results
Sales increased by 8.8% to CHF 406.4 millionWithout FX impact, sales would have increased by 12.6%
We achieved this despite lockdowns in China, supply chain difficulties, andgeopolitical challenges

Our revenues demonstrated the fundamental demand for our products and thestrengths of the company operationallyAnother milestone was our move to our new headquarters in Meyrin,
Geneva, in April 2022
LEM’s innovative spirit is visible, and collaboration between teams is facilitated

Full Year Results 2022/23

25.05.2023

4Penang, Malaysia, site progress
Building handover planned for end of September 2023Construction slightly ahead of schedule
Recruitment showing significant progress, highquality candidates available in Malaysia
First exports expected early 2024

Strategic location to improve supply chains, increase
resilience, and better meet the needs of customers
in Asia, as well as Europe and the Americas

Site per May 2023

Main testing base for integrated current sensor (ICS)
products for Automation, Automotive and Renewable
EnergyFull Year Results 2022/23

25.05.2023

5Agenda

Opening Remarks

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank RehfeldProposal to Shareholders

Andreas Hürlimann

Full Year Results 2022/23

25.05.2023

6

A leading company in electrical measurement
FiveBusinesses

Automation

Automotive

Renewable
EnergyEnergy Distribution& High Precision

Track

FY 2022/23 Sales
CHF m

136.3

100.7

67.0

59.4

43.0

Δ CHF

+4.6%

+17.4%+1.6%+22.3%+0.4%

Δ constant currency+8.2%+19.0%+6.3%+27.6%+5.7%

Full Year Results 2022/23

25.05.2023

7

Sales spread by business

GrowthBalanced portfolio
11%

Growth led by
Automotive and Energy
Distribution
Strong demand for EVs
and EV charging
stations

33%

15%

16%
25%

Sales

FY 22/23

Q4 22/23

CHF m

vs 21/22

vs 21/22

Automation

136.3

+4.6%

+2.3%

Automotive

100.7+17.4%+9.1%

Renewable Energy

67.0

+1.6%

+1.4%

Energy Distribution & High Precision

59.4+22.3%+25.2%

Track

43.0

+0.4%

+3.1%

TOTAL

406.4

+8.8%*+7.0%* +12.6% at constant currency rates

Prospects for
Renewable Energy
remain promising

Full Year Results 2022/23

25.05.2023

8Automation
Drives, robots, tooling machines, elevators, and HVAC
CHF m140120

In CHF m100FY

FY

Q4Q42022/23

2021/222022/232021/22

136.3

130.3

34.5

33.7

80

Strong demand for products in manufacturing
equipment such as tooling machines, robotics, andconveyor belts

60

Extreme weather conditions caused by global
climate change are driving demand for sensors inapplications such as coolers and heat pumps

40

20

0
18/19

19/20
FY Business sales

20/21

21/22

22/23

FY Business sales

Full Year Results 2022/23

25.05.2023

9Automotive
Battery (EV & CE), motor control, and onboard charging
CHF m

120

100

In CHF m

FYFYQ4Q42022/23

2021/222022/232021/22

100.7

85.8

25.4

23.3

8060

Continued sales growth despite lockdowns andsupply constraints

40

Business driven by sensors for battery management
and motor control

200
18/19

19/20
FY Business sales

20/21

21/22

22/23

FY Business sales

Leading OEMs strengthened their market positions,while Chinese newcomers struggle to maintainmomentum
Global fundamental demand for EVs remains strong,
and we deliver to most players in the market
Full Year Results 2022/23

25.05.2023

10Renewable energy
Solar and wind
CHF m

7060

In CHF m50FYFY

Q4Q4

2022/232021/222022/232021/22

67.0

66.0

16.7

16.5

40

Sales increased only slightly due to component
shortages

3020

Good demand for our products, with China as
major market for solar products

10Prospects remain promising018/1919/20
FY Business sales

20/21

21/22

22/23

FY Business sales

Global trend of decarbonization continues to drive
growth, and supply chain constraints are expectedto ease
Full Year Results 2022/23

25.05.2023

11

Energy distribution and high precision
Charging stations, smart grid, energy storage, and high precision
CHF m7060

In CHF m50

FYFYQ4Q4

2022/232021/222022/232021/22

59.4

48.6

16.6

13.2

40

Many new customers signing orders for products inEV charging stations and energy grid applications

30

Global investments in e-mobility infrastructure drivestrong performance of DC meter product, with
Europe and the US contributing to major growth20

10High precision solutions for test benches and MRI
scanners continue to develop well

0
18/19

19/20
FY Business sales

20/21

21/22

22/23

FY Business sales

Full Year Results 2022/23

25.05.2023

12TrackTrains, metro, and trackside
CHF m

60

50

In CHF m

FYFYQ4Q42022/23

2021/222022/232021/22

43.0

42.8

11.6

11.3

4030

Track business, with its project-based long
investment horizons, remains stable

20Grew by 5.7% at constant exchange rates
Extra demand coming from the EU, which isrenewing energy meters in various countries

100

18/19

19/20
FY Business sales

20/21

21/22

22/23

FY Business sales

Full Year Results 2022/23

25.05.2023

13Sales spread by region

GrowthBalanced exposure
12%

China and Americas
lead growth

39%

Close to customers onthe ground in all key
markets

31%18%Sales

FY 22/23

Q4 22/23

CHF mvs 21/22

vs 21/22

China

157.9

+9.8%

-0.1%

Rest of Asia

71.0+5.3%+10.5%

EMEA

127.7+2.4%+9.9%

Americas49.8+32.9%+15.3%

TOTAL

406.4

+8.8%*+7.0%* +12.6% at constant currency rates

Full Year Results 2022/23

25.05.2023

14

AgendaOpening Remarks

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank Rehfeld

Proposal to Shareholders

Andreas Hürlimann

Full Year Results 2022/23

25.05.2023

15Performance at a glance
FY 2022/23
CHF m

FY 22/23

Q4 22/23

vs 21/22

vs 21/22

Orders received

465.2-19.3%-26.2%

Sales

406.4

+8.8%*

+7.0%

EBIT

92.2

+4.3%

-1.5%

Net profit

75.3

+4.1%

+7.6%

* +12.6% at constant currency rates

Bookings decreased to more normal levels after the extreme disruptions of the past two years
At constant exchange rates, sales increased by 12.6%
EBIT improved primarily due to sales
Net profit margin decreased to 18.5% compared with 19.4%

Full Year Results 2022/2325.05.2023

16Gross margin
CHF m

25050%FYFYQ4Q42022/23 2021/22 2022/23 2021/22

48%
200

In CHF m

192.2

177.3

49.4

47.2

In % of sales

47.3%

47.5%

47.1%

48.2%

46%
15044%
10042%

Gross margin decreased by 20 basis pts:
80% of sales produced in China and Bulgaria

5040%

0Sales price increases are being offset bypurchase price increases

38%
18/19

19/20

20/21

21/22

22/23

Full year GM in % of sales

Full Year Results 2022/23

25.05.2023

17

SG&A
CHF m

80

30%FYQ4FYQ4702022/23 2021/22 2022/23 2021/22
6020%

In CHF m

68.1

59.7

18.1

16.1

In % of sales

16.8%

16.0%

17.3%

16.5%

50

40

3010%
20

Absolute increase of CHF 8.4 million
Digitalization projects
External consulting support

10Recruitment of additional talent
00%
18/19

19/20

20/21

21/22

22/23

Full year SG&A in % of sales

Full Year Results 2022/23

25.05.2023

18

R&D
CHF m

3510%

FY
306%
20Q4

Q4

2022/23 2021/22 2022/23 2021/22

8%
25FY

In CHF m

32.2

29.4

7.4

6.9

In % of sales

7.9%

7.9%

7.1%7.0%

154%

R&D investment up by 9.5% to
CHF 32.2 million due to new hires

102%
500%
18/19

19/20

20/21

21/22

22/23

Long-term investment in future applications
Investment continues to bear fruit with
9 product launches and 21 patents granted

Full year R&D in % of sales

Full Year Results 2022/23

25.05.2023

19Financial expense
FYFY

Q4

Q4

2022/232021/222022/232021/22

Exchange effect

(1.9)

(2.7)

0.2

(0.6)

Other financial expense & income

(1.3)

(0.4)

(0.4)

(0.2)

Total(3.3)

(3.1)

(0.2)

(0.8)

CHF m

Currency gains of CHF 0.2 million in Q4, however year-to-date negative foreignexchange effects of CHF 1.9 million, mainly due to Euro depreciation
Financial expenses impacted by expenses of CHF 0.8 million on lease liabilities ofour new headquarters
Higher interest expenses on loans due to increasing CHF and MYR interest rates

Full Year Results 2022/23

25.05.2023

20

Income taxes
FY
2022/23

FY2021/22

Expected income tax rate

15.6

15.2

Expected withholding tax rate

0.81.3Expected tax rate

16.4

16.5

Other differences

(1.1)

(1.4)

Effective tax rate

15.3

15.1%

The Group tax expenses of CHF 13.6 million represent a tax rate of 15.3%
Future tax rate expected to increase slightly due to upcoming regulatory changes

Full Year Results 2022/23

25.05.2023

21

Income statement
FYFY

Q4

Q4

CHF m

2022/232021/22

Change2022/232021/22

Sales

406.4

373.4

+8.8%

104.7

97.9

Gross profit margin %

47.3%

47.5%

-0.2%pt

47.1%

48.2%

Operating expenses(100.0)(88.9)+12.5%(25.5)(23.0)

92.2

88.4

+4.3%

23.8

24.2

EBIT margin %

22.7%

23.7%

-1.0%pt

22.8%

24.7%

Net financial expenses

(3.3)

(3.1)

+5.6%

(0.2)

(0.8)

Income tax(13.6)(12.9)

+5.2%

(3.5)

(4.7)

Net profit

75.3

72.4

+4.1%

20.1

18.6

18.5%

19.4%

-0.9%pt

19.2%

19.0%

EBIT

Net profit margin %Full Year Results 2022/23

25.05.2023

22

Balance sheet

CHF m

31.3.2023

31.3.2022

Net working capital

75.4

72.4

Fixed assets

153.9

147.9

Noncurrent liabilities(39.0)(35.7)Net operating assets

190.3

184.6

Net cash/(debt)(21.8)(23.5)

Equity

173.6

161.2

Equity ratio

53.0%

53.5%

Days of sales outstanding

7270

Days of inventory outstanding

10289

Days of payables outstanding

5442• Balance sheet remains
strong with limited net
debt of CHF 21.8 million• Net working capitalincreased in line withbusiness growth• Equity ratio basicallystable at 53.0%

Full Year Results 2022/23

25.05.2023

23

Cash flow

CHF mFY2022/23

FY •2021/22

Cash flow from operatingactivities was CHF 87.0
million compared with
CHF 50.4 million

Profit before taxes

88.9

85.3

Adjustment for non-cash items and taxes paid

9.0

(20.0)Cash flow from changes in net working capital(11.0)(14.9)Cash flow from operating activities

87.0

Cash flow from investing activities(26.5)

Free cash flow

60.5

• Free cash flow was CHF
50.4
60.5 million (CHF 29.4million), reflecting the(21.0)
healthy financial situation
29.4

Cash flow from financing activities(54.9)(34.6)

Change in cash and cash equivalents

5.6(5.2)

Cash and cash equivalents at the end of the period

21.8

17.2

Full Year Results 2022/23

25.05.2023

24

AgendaOpening Remarks

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank Rehfeld

Proposal to Shareholders

Andreas Hürlimann

Full Year Results 2022/23

25.05.2023

25

Outlook – Financial Year 2022/23
Our businesses have proven successful and will benefit
as the mega trends of decarbonization andelectrification continue to be fundamental growth drivers
For the mid and long term, we are confident about ourcompany’s growthDemand remains high for our products, which play animportant role in the acceleration of the shift towards
sustainability
In the short term, growth may be affected in somebusinesses and regions by market adjustments andcomponent shortages
There may be slowdowns resulting from geopoliticaltensions as well
Therefore, we will remain vigilant for the next 12 months
Full Year Results 2022/23

25.05.2023

26

AgendaOpening Remarks

Frank Rehfeld

Business PerformanceFrank Rehfeld

Financial Results

Andrea Borla

OutlookFrank Rehfeld

Proposal to Shareholders

Andreas Hürlimann

Full Year Results 2022/23

25.05.2023

27

The long-term view

Share price development from 31 March 2013 to 31 March 2023: +334%
Distributed dividends over the last 10 years: CHF 449m
Full Year Results 2022/23

25.05.2023

28

Proposal to shareholders

66.1

63.5
50.0

53.3
47.8
40.0

42.0 46.0

42.0

40.0

52.0

48.8

Dividend policy of distributing significantly
more than 50% of consolidated net profit
Based on the excellent results for 2022/23, thelong-term fundamentals for the business
Proposed ordinary dividend of CHF 52 pershare, up from CHF 5035.0 39.1

Pay-out ratio of 78.7%, down from 78.8%

Represents a dividend yield of 2.6% (as per 31March 2023)
Sign of trust in the company’s future
16/17

17/18

18/19
Dividend

19/20

20/21

21/22

22/23

Earnings per share

Full Year Results 2022/23

25.05.2023

29

Q&A

Full Year Results 2022/23

25.05.2023

30

Financial calendar and contact details
The financial year runs from 1 April to 31 March

For further information

29 June 2023

Annual General Meeting FY 2022/23

Andrea Borla, CFO

4 July 2023

Dividend ex-date

Phone: +41 22 706 12 50

6 July 2023

Dividend payment dateE-mail: investor@lem.com

27 July 2023

First quarter results 2023/24

10 November 2023

Half year results 2023/24

2 February 2024

9 months results 2023/24

28 May 2024

Full year results 2023/24

27 June 2024

Annual General Meeting FY 2023/24

2 July 2024

Dividend ex-date

4 July 2024

Dividend payment date
Full Year Results 2022/23

25.05.2023

31

lifeenergy
motion